Jeffrey a mello 4e chapter 10 performance management and feedback

Performance Management & – Performance deficiencies addressed in timely manner through employee development programs – Employee behaviors channeled in appropriate direction toward perf

PERFORMANCE MANAGEMENT

AND FEEDBACK

Performance Management &

– Performance deficiencies addressed in timely

manner through employee development programs

– Employee behaviors channeled in appropriate

direction toward performance of specific objectives

– Employees provided with appropriate & specific

feedback to assist with career development

Organizations need broader performance

measures to insure

– Performance deficiencies addressed in timely

manner through employee development programs – Employee behaviors channeled in appropriate

direction toward performance of specific objectives – Employees provided with appropriate & specific feedback to assist with career development

Who Evaluates?

Who Evaluates?

performance evaluations

– Lacking appropriate information to provide informed

feedback on employee performance

– Insufficient observation of employee’s day-to-day work to

validly assess performance

– Lack of knowledge about technical dimensions of

subordinate’s work

– Lack of training or appreciation for evaluation process

– Perceptual errors by supervisors that create bias or lack of

subjectivity in evaluations

performance evaluations

– Lacking appropriate information to provide informed

feedback on employee performance

– Insufficient observation of employee’s day-to-day work to

validly assess performance

– Lack of knowledge about technical dimensions of

subordinate’s work

– Lack of training or appreciation for evaluation process

– Perceptual errors by supervisors that create bias or lack of

subjectivity in evaluations

Perceptual Errors of Raters

Perceptual Errors of Raters

• Halo effect

– Rater allows single trait, outcome or consideration to

influence other measures of performance

– Rater makes performance judgments based on employee’s

personal characteristics rather than employee’s actual

performance

– Recent events & behaviors of employee bias rater’s

evaluation of employee’s overall performance

• Halo effect

– Rater allows single trait, outcome or consideration to

influence other measures of performance

– Rater makes performance judgments based on employee’s

personal characteristics rather than employee’s actual

performance

– Recent events & behaviors of employee bias rater’s

evaluation of employee’s overall performance

Perceptual Errors of Raters

Perceptual Errors of Raters

– Evaluator avoids higher & lower ends of rating in favor of

placing all employees at or near middle of scales

• Leniency or strictness errors

– Evaluator’s tendency to rate all employees above (leniency)

or below (strictness) actual performance level

• Personal biases & organizational politics

– Have significant impact on ratings employees receive from

supervisors

– Evaluator avoids higher & lower ends of rating in favor of

placing all employees at or near middle of scales

• Leniency or strictness errors

– Evaluator’s tendency to rate all employees above (leniency)

or below (strictness) actual performance level

• Personal biases & organizational politics

– Have significant impact on ratings employees receive from

supervisors

Purposes of Performance Management Systems

Purposes of Performance Management Systems

– Determine specific training & development needs

– Assess individual & team strengths & weaknesses

– Salary, promotion, retention, & bonus decisions

– Employees must understand & accept performance

feedback system

– Employee acknowledgment & praise reinforces desirable

behaviors & outcomes

– Determine specific training & development needs

– Assess individual & team strengths & weaknesses

– Salary, promotion, retention, & bonus decisions

– Employees must understand & accept performance

feedback system

– Employee acknowledgment & praise reinforces desirable

behaviors & outcomes

Purposes of Performance Management Systems

Purposes of Performance Management Systems

• Facilitate legal compliance

– Documentation is strong defense against

charges of unlawful bias

• Facilitate HR planning process

– Alert organization to deficiencies in overall

level & focus of employee skills

• Facilitate legal compliance

– Documentation is strong defense against

charges of unlawful bias

• Facilitate HR planning process

– Alert organization to deficiencies in overall

level & focus of employee skills

Other Performance Feedback

Sources

Other Performance Feedback

Sources

– Only effective when political considerations & consequences

are minimized, & employees have sense of trust

– Insights into interpersonal & managerial styles

– Excellent measures of individual leadership capabilities

– Same political problems as peer evaluations

– Feedback most free from bias

– Only effective when political considerations & consequences

are minimized, & employees have sense of trust

– Insights into interpersonal & managerial styles

– Excellent measures of individual leadership capabilities

– Same political problems as peer evaluations

– Feedback most free from bias

Other Performance Feedback

– More holistic assessment of performance

systems

– Can be very time-consuming

– More performance data collected, greater overall facilitation

of assessment & development of employee

– Costly to collect & process

– Consistent view of effective performance relative to strategy

– Allow employees to participate in critical employment

decisions

– More holistic assessment of performance

systems

– Can be very time-consuming

– More performance data collected, greater overall facilitation

of assessment & development of employee

– Costly to collect & process

– Consistent view of effective performance relative to strategy

What to Evaluate?

What to Evaluate?

• Traits measures

– Assessment of how employee fits with

organization’s culture, not what s/he actually does

• Behavior-based measures

– Focus on what employee does correctly &

what employee should do differently

• Traits measures

– Assessment of how employee fits with

organization’s culture, not what s/he actually does

• Behavior-based measures

– Focus on what employee does correctly &

what employee should do differently

– Problems occur when results measures are difficult to obtain,

outside employee control, or ignore means by which results were obtained

– Limitations

• Difficult to obtain results for certain job responsibilities

• Results sometimes beyond employee’s control

• Ignores means or processes

• Fails to tap some critical performance areas

• Results-based measures

– Focus on accomplishments or outcomes that can be

measured objectively

– Problems occur when results measures are difficult to obtain,

outside employee control, or ignore means by which results were obtained

– Limitations

• Difficult to obtain results for certain job responsibilities

• Results sometimes beyond employee’s control

• Ignores means or processes

• Fails to tap some critical performance areas

Job Performance Competencies

Job Performance Competencies

• Closely tied to organization’s strategic

Capital One Success Factors &

Competencies

Capital One Success Factors &

Competencies

• Builds relationships

– Communicates clearly & openly

– Treats others with respect

– Collaborates with others

• Applies integrative thinking

– Analyzes information

– Generates & pursues ideas

– Develops & shapes strategies

– Identifies & solves problems

– Applies integrated decision making

• Drives toward results

– Focuses on strategic priorities

– Organizes & manages multiple tasks

– Directs & coordinates work

– Gets job done

• Builds relationships

– Communicates clearly & openly

– Treats others with respect

– Collaborates with others

• Applies integrative thinking

– Analyzes information

– Generates & pursues ideas

– Develops & shapes strategies

– Identifies & solves problems

– Applies integrated decision making

• Drives toward results

– Focuses on strategic priorities

– Organizes & manages multiple tasks

– Directs & coordinates work

– Gets job done

• Leads in learning

environment

– Recruits talent– Motivates & develops– Builds & leads teams– Influences others– Promotes culture

• Takes personal ownership

– Takes responsibility– Learns continuously– Embraces change– Initiates opportunities for

improvement

– Shows integrity– Maintains perspective

• Leads in learning

environment

– Recruits talent– Motivates & develops– Builds & leads teams– Influences others– Promotes culture

• Takes personal ownership

– Takes responsibility– Learns continuously– Embraces change– Initiates opportunities for

improvement

– Shows integrity– Maintains perspective

How to Evaluate?

How to Evaluate?

• Absolute measurement

– Measured strictly by absolute performance

requirements or standards of jobs

• Relative assessment

– Measured against other employees & ranked on

distance from next higher to next lower performing employee

– Ranking allows for comparison of employees but

does not shed light on distribution of performance

• Absolute measurement

– Measured strictly by absolute performance

requirements or standards of jobs

• Relative assessment

– Measured against other employees & ranked on distance from next higher to next lower performing employee

– Ranking allows for comparison of employees but does not shed light on distribution of performance

Forced Ranking/Distribution

Forced Ranking/Distribution

– Best way to identify highest-performing employees

– Data-driven bases for compensation decisions

– Forces managers to make & justify tough decisions

– Can be arbitrary, unfair, & expose organization to lawsuits– Inherent subjectivity

organizations with high-pressure, results-driven culture

– Best way to identify highest-performing employees

– Data-driven bases for compensation decisions

– Forces managers to make & justify tough decisions

– Can be arbitrary, unfair, & expose organization to lawsuits– Inherent subjectivity

organizations with high-pressure, results-driven culture

• Behavioral observation scales (BOS)

• Critical incident method

• Management by objectives (MBO)

• Graphic rating scales

• Weighted checklists

• Behaviorally anchored rating scales

(BARS)

• Behavioral observation scales (BOS)

• Critical incident method

• Management by objectives (MBO)

Objectives-Based Performance

Measurement

Objectives-Based Performance

Measurement

• Enhanced employee motivation

• Employees can far more committed to

reaching performance objectives they have agreed to

• When employee participates, his/her

trust & dependability placed on line

• Enhanced employee motivation

• Employees can far more committed to reaching performance objectives they have agreed to

• When employee participates, his/her trust & dependability placed on line

Objectives-Based Performance

Measurement

Objectives-Based Performance

Measurement

• Three common oversights

– Setting vague objectives

– Setting unrealistically difficult objectives

– Not clarifying how performance will be measured

• Objectives selected must be valid

• Three common oversights

– Setting vague objectives

– Setting unrealistically difficult objectives

– Not clarifying how performance will be measured

• Objectives selected must be valid

Other Considerations Other Considerations

training & development, & compensation

• Assignments & responsibilities

redesign due to changes in contemporary

organizations

• Degree of standardization or flexibility of

performance management system

– Standardization important to prevent job bias

– Flexibility important differing levels of responsibility

& accountability

training & development, & compensation

• Assignments & responsibilities

redesign due to changes in contemporary

organizations

• Degree of standardization or flexibility of

performance management system

– Standardization important to prevent job bias

– Flexibility important differing levels of responsibility

& accountability

Reasons Managers Resist or Ignore

Performance Management

Reasons Managers Resist or Ignore

Performance Management

• Process is too complicated

• No impact on job performance

• Possible legal challenges

• Lack of control over process

• No connection with rewards

• Complexity & length of forms

• Process is too complicated

• No impact on job performance

• Possible legal challenges

• Lack of control over process

• No connection with rewards

• Complexity & length of forms

Strategies for Improving Performance

Management System

Strategies for Improving Performance

Management System

• Involve managers in design of system

• Hold managers accountable for

performance & development of

subordinates

• Set clear expectations for performance

• Set specific objectives for system

• Tie performance measures to rewards

• Gain commitment from senior managers

• Involve managers in design of system

• Hold managers accountable for

performance & development of

subordinates

• Set clear expectations for performance

• Set specific objectives for system

• Tie performance measures to rewards

• Gain commitment from senior managers

Reading 10.1 – Effective Leadership Behavior: What We Know and What Questions Needs More Attention

Reading 10.1 – Effective Leadership Behavior: What We Know and What Questions Needs More Attention

Hierarchical Taxonomy of Leadership Behaviors

•Monitoring operations - assess whether people are carrying out their assigned tasks, the work is progressing as planned, and tasks are being performed

adequately

•Problem solving - deal with disruptions of normal operations and member

behavior that is illegal, destructive, or unsafe

Hierarchical Taxonomy of Leadership Behaviors

•Monitoring operations - assess whether people are carrying out their assigned tasks, the work is progressing as planned, and tasks are being performed

adequately

•Problem solving - deal with disruptions of normal operations and member

behavior that is illegal, destructive, or unsafe

Reading 10.1 – Effective Leadership Behavior: What We

Know and What Questions Needs More Attention

Reading 10.1 – Effective Leadership Behavior: What We

Know and What Questions Needs More Attention

Relations-oriented (enhance member skills, the leader–member

relationship, identification with the work unit or organization, and

commitment to the mission)

•Supporting - show positive regard, build cooperative relationships, and help people cope with stressful situations

•Developing - increase the skills and confidence of work-unit members and to facilitate their career advancement

•Recognizing - show appreciation to others for effective performance, significant achievements, and important contributions to the team or organization

•Empowering - by giving subordinates more autonomy and influence over decisions about the work

Relations-oriented (enhance member skills, the leader–member

relationship, identification with the work unit or organization, and

commitment to the mission)

•Supporting - show positive regard, build cooperative relationships, and help people cope with stressful situations

•Developing - increase the skills and confidence of work-unit members and to facilitate their career advancement

•Recognizing - show appreciation to others for effective performance, significant achievements, and important contributions to the team or

organization

•Empowering - by giving subordinates more autonomy and influence over decisions about the work